Trade-In Boosts "Golden September-October" Car Sales
"The foot traffic is very high, with the number of customers entering the store from October 1st to 5th being about twice as much as usual," said Wan Fang (a pseudonym), a salesperson for Li Auto at the Huiju Center in Beijing's Daxing District, to the reporter from China Securities Journal on October 6th.
During the National Day holiday, orders for many car brands have seen a significant increase. On October 8th, brands such as Hongmeng Zhixing and Ji Hu released their sales figures for the holiday. Ji Hu stated that its multiple models have experienced a noticeable surge in sales.
Reporters from China Securities Journal visited several new energy vehicle sales stores in areas like Daxing, Tongzhou, and Chaoyang in Beijing and learned that in order to boost sales during the National Day "Golden Week," automakers have introduced time-limited preferential policies and other benefits, in conjunction with the "trade-in" initiative, which has stimulated consumer enthusiasm in the car market.
High foot traffic during the National Day holiday
On the evening of October 6th, reporters from China Securities Journal observed a steady stream of consumers visiting car sales stores at the MixC shopping mall in Tongzhou to inquire and make purchases.
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Hongmeng Zhixing offered multiple car purchase benefits during the National Day holiday, with the highest benefit of 20,000 yuan for trading up to a new car of the brand.
On October 7th, staff at new energy vehicle sales stores such as Li Auto, Tesla, Xiaomi Auto, and NIO Auto at the Huiju Center in Daxing District told reporters that the foot traffic during the National Day holiday was high, with a noticeable increase in orders and a higher number of trade-in customers.
Li Auto introduced a limited-time discount. Wan Fang (a pseudonym), a salesperson for Li Auto at the Huiju Center in Daxing District, told reporters: "Ordering the Li L6 before 24:00 on October 8th entitles you to a benefit of 11,000 yuan. From October 1st to 5th, the foot traffic was about twice as much as usual."
On October 8th, several brands released their sales figures for the National Day "Golden Week." Among them, data disclosed by Hongmeng Zhixing showed that from October 1st to 7th, the total number of firm orders for all Hongmeng Zhixing models was 28,600.
During the National Day holiday, orders for Ji Hu, a subsidiary of BAIC BluePark, reached 5,252 units, with noticeable growth in sales of multiple models.Automotive Sales Shine in September
As of October 8th, several automakers have disclosed their September sales reports. Boosted by the "trade-in" initiative and the密集 launch of new models by automakers, the "golden September and silver October" peak season for automotive consumption has become even more heated.
Reporters have learned that in September, many new energy vehicle brands saw significant month-on-month and year-on-year growth in sales. At the same time, automakers such as Li Auto, Leapmotor, and XPeng set new records for monthly deliveries.
Li Auto once again won the "sales champion" among new force automakers. In September, Li Auto delivered over 50,000 vehicles, with 53,709 new vehicles delivered, setting a new record for monthly deliveries, with a month-on-month increase of 11.6% and a year-on-year increase of 48.9%.
The AITO brand, a collaboration between Huawei and Seres, followed closely behind. In September, AITO delivered 35,560 new vehicles, with increases both month-on-month and year-on-year. Among them, the M9 series delivered 15,496 vehicles, and the new M7 series delivered 16,805 vehicles.
Leapmotor's deliveries in September once again exceeded 30,000 vehicles, with 33,767 new vehicles delivered, a year-on-year increase of 113.7%, setting a new record for monthly deliveries.
In September, XPeng, Zeekr, and NIO all delivered over 20,000 vehicles, with 21,352, 21,333, and 21,181 vehicles respectively. Among them, XPeng set a new record for monthly deliveries, with a month-on-month increase of 52%. XPeng's achievement is closely related to the launch of the XPeng MONA M03. In September, deliveries of the XPeng MONA M03 exceeded 10,000 vehicles.
NIO stated that the first model of the company's second brand, Ledao, the L60, began deliveries on September 28th, and deliveries will accelerate in October.
BYD's sales in September exceeded 400,000 vehicles for the first time, leading new energy vehicle brands. Data released by BYD shows that in September, the company's new energy vehicle sales reached 419,400 vehicles, compared to 287,500 vehicles in the same period last year. Among them, the BYD Dynasty series' monthly sales exceeded 200,000 vehicles for the first time.
"As the penetration rate of new energy vehicles exceeds 50%, the effect of leading brands becomes more apparent. Since the third quarter, in the new energy vehicle market above 200,000 yuan, the combined market share of the top three brands has reached 50%," said Li Xiang, Chairman and CEO of Li Auto.Policy Boosts Are Clearly Effective
The launch of new car models and policies such as "trade-in" have driven an increase in car sales.
Recently, the Ministry of Commerce and other departments jointly issued a "Notice on Further Doing a Good Job in the Trade-in of Old Cars for New Ones." Subsequently, various regions have introduced relevant policies to intensify efforts to promote the trade-in of old cars for new ones.
Reporters from China Securities News found that recently, Beijing, Guizhou, Tianjin, and other places have introduced plans to vigorously support the renewal of equipment and the trade-in of old consumer goods for new ones. For eligible car scrapping and renewal, the subsidy standard has been increased from the previous subsidy of 10,000 yuan for purchasing new energy passenger cars and 7,000 yuan for purchasing fuel passenger cars to 20,000 yuan and 15,000 yuan, respectively.
With the advancement of the "trade-in" initiative, terminal consumption has been significantly boosted. Data from the Ministry of Commerce shows that as of midnight on September 25th, more than 1.13 million applications for car scrapping and renewal subsidies have been received. From January to August 2024, the national scrap car collection volume increased by 42.4% compared to the same period last year, especially in May, June, July, and August since the implementation of the scrap renewal subsidy policy, with year-on-year increases of 55.6%, 72.9%, 93.7%, and 73.8%, respectively.
Automotive companies have launched new car models in a concentrated manner, boosting the "Golden September and Silver October" car market peak season. Models such as the Ledao L60, Hongmeng Zhixing Zhijie R7, and Chang'an AITO 07 have been launched in a concentrated manner and have achieved eye-catching results.
Industry insiders said that with the continuous advancement of the "trade-in" initiative and the launch of many competitive new car models, domestic car sales are expected to grow further.
On September 27th, Xin Guobin, the Vice Minister of Industry and Information Technology, stated at the 2024 World New Energy Automobile Conference that the Ministry of Industry and Information Technology will further increase the promotion and application of new energy vehicles. Deeply implement the car "trade-in" initiative, carry out the new energy vehicle rural activity and the comprehensive electrification pilot of public field vehicles, and actively expand the consumption of new energy vehicles.
Cui Dongshu, the Secretary-General of the Passenger Car Association, estimated that in 2024, domestic car retail sales will reach 22.3 million units, a year-on-year increase of 3%. Among them, the retail sales of new energy passenger cars will be 10.4 million units, a year-on-year increase of 34%.
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